Theory Of Consumer Ethnocentrism

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Consumer ethnocentrism is in the last two decades become one of the research trends, and the results show that high level of ethnocentrism reduces willingness to buy imports. The main concept of consumer ethnocentrism was developed by Shimp 1984. He established that the ethnocentrism is belief that it is moral/immoral to buy foreign products. Sharma, Shimp and Shin in 1994 confirmed consumer tendencies in overvaluation of domestic products. This was start and the begining of accepting a consumer ethnocentrism which is based on the idea that the buying domestic products is not just economic but also moral obligation. Ethnocentric consumer thinks that buyers of foreign products are responsible for economic problems, such as unemployment. On the other hand buyers who are not ethnocentric are buying products with the best price and quality. Domestic firms used this concept in their favour to atract more customers. Consumer ethnocentrism is strongly linked to the appeal of domestic companies and governments to …show more content…

(1993) propose capital, empathy, cost, and accountability as possible mediators in the process between consumer ethnocentrism and readiness to purchase imported products. The explanation of these variables lies in the logic that ethnocentric consumers will perceive international competition as something that is not fair to the domestic industry. This will then force consumers to buy domestic products, which increases empathy for members of the internal group, and increases readiness for further purchase of domestic products. Ethnocentric consumers will also ignore personal costs by purchasing domestic products. Another important variable is certainly the effect of the "country of origin". Han (1988) includes the country of origin as a variable that dictates the relationship between consumer patriotism and the intent of buying. Namely, consumers of expressed patriotism will moreover buy domestic products, and avoid buying products of foreign

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